Japan’s New Government

On October 1, Shigeru Ishiba was sworn in as Japan’s new prime minister. The government resigned in full and the new head immediately started forming his cabinet. These changes were expected, since the day before Ishiba won the election of the head of the Liberal Democratic Party (LDP), which, along with the Komeito party, has a majority in both houses of parliament.

Shigeru Ishiba has previously unsuccessfully run for Prime Minister four times. In this case, the race was also difficult, with nine candidates participating. But only two of them, Koizumi Shinjiro and Ishiba Shigeru, were clear favorites among both party supporters and the public.

By the end of the two-week campaign, a third candidate appeared, Takaichi Sanae, who challenged both of them. Takaichi, in fact, took first place in the first round of voting, and Ishiba came second. Seven hundred and thirty-six votes were required, half of which came from party members across the country and half from legislators. Takaichi received 109 votes from ordinary citizens and 72 from members of Parliament, for a total of 181 votes. Ishiba, an unwavering favorite throughout the election race among regional party members, enjoyed less support from lawmakers and came in second place with 154 votes.

The result of the second round was 215 votes against 194, which revealed disagreements within the party over the choice of the candidate. Here we should say a little about the political structure of Japan. If in our view there should be discipline within any party, then in Japan all political parties are groups of cliques with interests that can sometimes contradict each other.

The 67-year-old banker-turned-politician, who has long aspired to the highest post, during his 38-year political career (he was first elected to parliament in 1986) has mainly dealt with issues of security and the revival of rural communities in Japan. Shigeru Ishiba has been called a “military geek” for his interest in defense policy, which he says originated after the Gulf War. He collects models of military equipment and is a fan of anime, but his interest in military subjects (not to mention that he was the Minister of Defense of the country) is not limited.

Ishiba advocates the establishment of an Asian equivalent of NATO and the possibility of deploying US nuclear weapons in the Asia-Pacific region. He put forward these proposals during the election campaign. At the same time, he is actively promoting it in the United States. In particular, the Hudson Institute analytical center published Ishiba’s article on September 25 on his vision of bilateral cooperation and the security system in the Asian region.

It can be said that in the case of Ishiba, the emphasis on foreign policy and defense played a big role. Shortly before his election, Ishiba visited Taiwan and met with President Lai Ching-te to discuss Japan-Taiwan relations and the containment of China. There have been incidents at sea before, where China and Japan have mutually accused each other of violating territorial waters. Ishiba believes that the Japanese self-defense forces should be given permission to fire warning shots if other foreign vessels enter their airspace or waters.

In addition to the concept of establishing an Asian equivalent of NATO, Ishiba has certain proposals on the need to amend the Agreement on the Status of the US Armed Forces, which regulates the US military presence in Japan. Ishiba stated that this would be one of the priorities for his Cabinet.

A second foreign policy focal point in the campaign was the Japanese response to the death of a ten-year-old Japanese child while his mother walked him to school in China’s Shenzhen on September 18. Chinese officials claimed it was a random incident, but it occurred on the anniversary of the Mukden Incident of 1931 that led to the Second Sino-Japanese War.

It should be noted that Ishiba vigorously undertook to fulfill his powers and election promises. On the night of October 1-2, after the inauguration of his cabinet, Ishiba called US President Joe Biden and discussed strengthening the Japan-US alliance, urging the United States to continue to work closely with Japan as global partners. Ishiba also announced his intention to increase Japan’s defense budget and equipment in order to strengthen its military potential.

It is also known that Biden and Ishiba agreed on the need to develop multilateral networks of like-minded countries, such as cooperation with Australia and India within the framework of a Quadrilateral Partnership, as well as a trilateral partnership with South Korea and the Philippines. In addition, the topics of North Korea, Ukraine and the launch of Iran’s ballistic missiles at Israel were touched upon.

Although Ishiba declares that economically he will continue Fumio Kishida’s course in order to lead Japan out of a long-term spiral of deflation, his election as Prime minister of Japan led to fluctuations in the yen exchange rate – 146 yen was given for the dollar before he was elected the new head of the party. And by Monday, September 30, the exchange rate was 141 yen. Ishiba himself stated his desire to raise taxes on financial income, which led to a drop in the Nikkei index, as investors believe that such a policy could negatively affect Japanese stocks.

There are other factors indicating the upcoming weakening of the yen, including speculative purchases.

Although it is highly likely that monetary volatility will persist until early November, when elections will be held in both Japan and the United States and it will be easier to determine the direction of monetary policy in Japan and the United States based on their results.

The dissolution of the lower house of the Japanese parliament is expected on October 9, and early elections will be held on October 27. The new Prime Minister has already expressed his readiness for the upcoming elections to the House of Representatives, saying: “I want to face the elections face to face, with all my heart and soul, without running away.” Although these elections, despite his stated enthusiasm, may not be easy for him. On September 23, the Constitutional Democratic Party of Japan elected former Prime Minister Noda Yoshihiko as its new leader in an attempt to win over more centrist conservatives dissatisfied with the LDP. The Komeito Party, which is a partner of the LDP, is also undergoing leadership changes.

In addition, there is an opinion that even though he broke through to the post of prime minister, Ishiba will not be able to hold on for long. His proposal for an “Asian NATO” is completely unrealistic and will not stand up to discussion in parliament. Indeed, even in the United States, they were rather wary of this idea. And the aforementioned call for higher taxes will be negatively perceived by Japanese voters. Finally, the peculiarities of Japan’s political system itself, where scandals involving cabinet ministers or defections often occur, can also play a role. And the special adviser to former Prime Minister Shinzo Abe, in addition to this, believes that Ishiba’s political positions and his questionable managerial skills do not bode well.

For Russia, it is obvious that if the ideas of an “Asian NATO” begin to even partially translate into reality, then this particular strategic course does not bode well, primarily for Japan, but also for the security of the region as a whole.

Japan’s New Government